Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
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PUBLIC FINANCE, TAXATION (37 journals)

Showing 1 - 35 of 35 Journals sorted alphabetically
American Economic Journal : Economic Policy     Full-text available via subscription   (Followers: 164)
Analyses of Social Issues and Public Policy     Hybrid Journal   (Followers: 14)
Annals of Public and Cooperative Economics     Hybrid Journal   (Followers: 6)
Annual Review of Public Health     Open Access   (Followers: 33)
Antitrust Bulletin     Hybrid Journal   (Followers: 8)
Australian Journal of Public Administration     Hybrid Journal   (Followers: 214)
BMC Public Health     Open Access   (Followers: 126)
Canadian Public Policy / Analyse de Politiques     Hybrid Journal   (Followers: 4)
Corporate Governance International Journal of Business in Society     Hybrid Journal   (Followers: 4)
Current Issues in Auditing     Full-text available via subscription   (Followers: 4)
Economics of Governance     Hybrid Journal   (Followers: 8)
Financial Internet Quarterly     Open Access  
Governance : An International Journal of Policy, Administration and Institutions     Hybrid Journal   (Followers: 51)
HOLISTICA ? Journal of Business and Public Administration     Open Access  
Institute of Public Affairs Review: A Quarterly Review of Politics and Public Affairs, The     Full-text available via subscription   (Followers: 8)
International Journal of Business Governance and Ethics     Hybrid Journal   (Followers: 5)
International Journal of Corporate Governance     Hybrid Journal   (Followers: 4)
International Journal of Disclosure and Governance     Hybrid Journal   (Followers: 6)
International Journal of Organization Theory and Behavior     Hybrid Journal   (Followers: 1)
International Journal of Public Health     Hybrid Journal   (Followers: 15)
International Journal of Public Policy     Hybrid Journal   (Followers: 5)
Journal of Accounting and Public Policy     Hybrid Journal   (Followers: 7)
Journal of Applied Sciences in Accounting, Finance, and Tax     Open Access  
Journal of Business Thought     Full-text available via subscription  
Journal of Entrepreneurship and Public Policy     Hybrid Journal   (Followers: 7)
Journal of Management and Governance     Hybrid Journal   (Followers: 8)
Journal of Monetary Economics     Hybrid Journal   (Followers: 95)
Journal of Public Affairs     Hybrid Journal   (Followers: 1)
Journal of Public Economics     Hybrid Journal   (Followers: 76)
Journal of Public Economics Plus     Open Access  
Journal of Public Policy     Hybrid Journal   (Followers: 26)
Jurnal Akuntansi dan Perpajakan     Open Access  
Public Integrity     Full-text available via subscription   (Followers: 1)
Public Money & Management     Hybrid Journal   (Followers: 7)
Public Understanding of Science     Hybrid Journal   (Followers: 15)
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Journal Cover
Corporate Governance International Journal of Business in Society
Journal Prestige (SJR): 0.336
Citation Impact (citeScore): 1
Number of Followers: 4  
 
Hybrid Journal Hybrid journal   * Containing 2 Open Access Open Access article(s) in this issue *
ISSN (Print) 1472-0701 - ISSN (Online) 1758-6054
Published by Emerald Homepage  [360 journals]
  • Sustainable governance and climate-change disclosure in European banking:
           the role of the corporate social responsibility committee

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      Authors: Simona Cosma , Salvatore Principale , Andrea Venturelli
      Abstract: The purposes of this paper are: firstly, to assess the disclosure related to climate change (CC) by major European banks to understand if the banks have grasped the most substantive aspects of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and secondly, to evaluate the contribution of a non-traditional committee (i.e. corporate social responsibility (CSR) committee) to TCFD-compliant disclosure. Using content analysis and ordinary least squares regressions on a sample of 101 European banks, this study sought to investigate completeness, tone and forward-looking orientation of CC disclosure and explore the relationships between CSR committee and previous disclosure aspects. This study shows that European banks have been able to reach an intermediate level of adequacy of compliance in terms of completeness of information but forward-looking orientation seems to be the aspect that needs the most improvement. The existence of a CSR committee dedicated to sustainability issues seems to constitute the difference between the banks in terms of disclosure. The results highlight vulnerabilities in disclosure and board characteristics relevant for improving CC disclosure. Firms interested in strengthening stakeholder engagement and capturing strategic opportunities involved in CC should be encouraged to establish a CSR committee and appoint female directors in financial companies. This paper should be of interest to policymakers, governance bodies and boards of directors considering the initiative of corporate sustainable governance complementary to Directive 2014/95/EU on non-financial reporting by the European Commission. To the best of the authors’ knowledge, no prior study has investigated the relationship between the CSR committee and the application of the TCFD’s recommendations in the European banking industry.
      Citation: Corporate Governance
      PubDate: 2022-05-09
      DOI: 10.1108/CG-09-2021-0331
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate governance and financial reporting quality: a comparative study

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      Authors: Arshad Hasan , Doaa Aly , Khaled Hussainey
      Abstract: This paper aims to investigate the impact of corporate governance on financial reporting quality (FRQ) in Pakistan and the UK. In this paper, three accrual-based models are used to analyse FRQ for a sample of 1,550 firm-year observations, including 78 Pakistani firms and 77 UK firms, for the period 2009–2018. The analysis shows that board size has a negative impact on FRQ while foreign ownership has a positive impact for Pakistani and UK firms. It also shows that board independence has a positive impact on FRQ of Pakistani firms, while board meetings frequency and audit committee independence have a negative impact. We make no such observation for UK firms. In addition, the analysis shows that board gender diversity and ownership concentration negatively affect FRQ of UK firms. This study makes no such observation for Pakistani firms. Due to the study’s focus on Pakistani and UK firms, the findings may not be generalizable to other developed and emerging economies. The findings provide valuable insight to policymakers, regulators and investors by suggesting that the impact of board composition on FRQ of both Pakistani and UK firms is weak. The findings suggest that board size and foreign ownership are the attributes that require regulatory focus to increase FRQ. The negative impact of audit committee independence on FRQ induces rethinking among the policymakers in Pakistan and calls for fully independent audit committees. To the best of the authors’ knowledge, this is the first research endeavour to compare the context of a developed and an emerging economy regarding the impact of corporate governance on FRQ. It also contributes to the governance literature by using three measures of FRQ and a comprehensive set of corporate governance attributes.
      Citation: Corporate Governance
      PubDate: 2022-05-05
      DOI: 10.1108/CG-08-2021-0298
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Nexus between audit committee and corporate risk: evidence from Pakistan

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      Authors: Amna Noor , Muhammad Farooq , Zonaib Tahir
      Abstract: The purpose of this study is to investigate the impact of audit committee (AC) characteristics, such as AC size, AC independence and gender diversity on firm risk in the context of an emerging market. The sample data includes 102 nonfinancial Pakistan Stock Exchange listed firms from 2004 to 2018. Firm risk is measured through three proxies, namely, idiosyncratic risk, total risk and capital expenditure. Along with this, profitability, leverage, market-to-book ratio, firm age, net property plant and equipment (NPPE) and surplus cash are used as control variables. The Housman test is used to select the best model from the fixed-effect model and the random effect model to conclude the findings. According to the study's findings, AC characteristics have a negative and significant relationship with idiosyncratic risk. In addition, a gender-diverse AC has a significant negative relationship with capital expenditure. In connection with total risk, AC characteristics fail to shows any significant relationship. Among the control variables, the results show that profitability stand for return on asset (ROA) and NPPE have a significant negative relationship, whereas market-to-book value has a significant positive relationship with both idiosyncratic and total risk. The study's findings offer policymakers, managers and investors guidance. This study will provide new insights to the Pakistani Government, stock market, companies and accounting and auditing regulators in terms of understanding the determinants influencing risk management activities. Furthermore, this study will assist financial institutions in making credit decisions. In addition, this study provides policymakers, such as the stand for Securities and Exchange Commission of Pakistan (SECP), with guidelines for developing policies that strengthen the board governance mechanism. This study investigates the impact of AC characteristics on corporate risk, which is rarely discussed in emerging economies.
      Citation: Corporate Governance
      PubDate: 2022-05-05
      DOI: 10.1108/CG-11-2021-0418
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do independent boards pay attention to corporate sustainability'
           Gender diversity can make a difference

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      Authors: Sadi Boğaç Kanadlı , Asma Alawadi , Nada Kakabadse , Pingying Zhang
      Abstract: Using the attention-based view, this paper aims to examine whether and how board composition might influence the allocation of board attention to corporate sustainability. This is a conceptual paper that uses a theoretical perspective pointing to the importance of generating a board composition that might benefit both business case framing and paradoxical framing, a typology introduced in managerial cognition literature to explain managerial decision-making. The conclusions emerging from the reviewed literature suggest that boards that have realized an independence of perspective focus on shareholder profit maximization at the expense of considerations of corporate sustainability. It emerges that women directors who have adopted paradoxical framing can enable boards to consider not only economic but also environmental and social issues of sustainability during board decision-making. Further, it is noted that the effect of gender diversity on allocation of board attention to corporate sustainability is contingent upon contextual (board openness) and structural (chairperson leadership) factors that facilitate social interactions inside boardrooms. By considering alternative cognitive frames as well as social interactions, the propositions contribute to a better understanding of the allocation of board attention regarding ambiguous sustainability issues.
      Citation: Corporate Governance
      PubDate: 2022-05-03
      DOI: 10.1108/CG-09-2021-0352
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Does corporate governance induce green innovation' An emerging market
           evidence

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      Authors: Nur Asni , Dian Agustia
      Abstract: This study aims to investigate the effect of corporate governance (CG) mechanisms (board size, independent commissioner and ownership concentration) on green innovation (GI) in publicly traded companies of Indonesia as an emerging market. Archival data relating to CG and GI were collected for five years (2016–2020). A total of 640 observations were obtained and analyzed using a random effect model. The results indicate that effective governance mechanisms can encourage GI implementation to promote company sustainability. Respectively, the board size, independent commissioner and ownership concentration positively and significantly affect GI. These results imply that the optimal board size will result in effective coordination and cooperation in making GI decisions. Likewise, the proportional independent commissioners in the board structure will serve an effective oversight function. And concentrated ownership can influence executives to prefer innovation policies, such as GI. First, only a few CG mechanisms were used in this investigation. Therefore, further research needs to consider other mechanisms such as the number of commissioners, internal and external commissioners. Second, this research focused solely on Indonesia as an emerging market. Future research can be expanded to include countries with other emerging market characteristics. Third, different GI measurements from this study should be considered in future studies. Practically, the results of this study are expected to provide policy recommendations, including optimizing the CG mechanisms as a control tool to achieve organizational sustainability through GI according to stakeholder expectations. This can be achieved by optimizing the size of the board of directors. The low value of the board size coefficient implies that optimization of board size is needed to encourage GI. The company can gain directors’ competence, experience and skill to increase innovation performance. In addition, maximizing the role of independent commissioners in overseeing is required for continuous innovation activities. Finally, the control of large shareholders is also necessary to encourage the implementation of GI because they could influence management to make innovative decisions. This study extends and contributes to the extant CG and GI literature. There is little evidence that reveals how CG mechanisms affect GI, particularly in emerging market settings. The findings offer some important evidence for improving CG in driving GI implementation.
      Citation: Corporate Governance
      PubDate: 2022-05-03
      DOI: 10.1108/CG-10-2021-0389
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Convergence and compliance of corporate governance codes: a study of 11
           Asian emerging economies

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      Authors: Yasir Bin Tariq , Amir Ejaz , Malik Fahim Bashir
      Abstract: The purpose of this paper is twofold. The first is to explore the convergence of corporate governance (CG) codes of 11 Asian emerging economies with the United Nations (UN) CG guidelines (United Nations Conference on Trade and Development ISAR benchmark). The second is to find the compliance level of firms in each country with the UN CG guidelines. Based on the 2017 GDP growth rate, the top 11 emerging economies were selected. CG codes of each country were then analyzed by using content analysis to find the convergence level with the UN CG guidelines. To find the compliance level of individual firms in each sample country, a sample of the top 15 non-financial listed firms were selected from each country, and their annual reports were analyzed. The binary scoring method was used. After analyzing the 11 national CG codes, 1 UN CG guidelines and 150 annual reports, this study found that Pakistan and Philippines CG codes have the highest level of convergence toward the outsider model recommended by UN CG guidelines, whereas China and India have the lowest compliance score. The Indian, Chinese, Malaysian and Indonesian listed firms showed more compliance toward the UN CG guidelines than their respective national CG codes. By analyzing the top 11 emerging economies, and top 15 listed enterprises in each country, this study offered a combined convergence and compliance evidence at two different levels, i.e. country and firm-level. This study’s findings would be equally helpful for regulators, policymakers and investors in assessing their country’s CG codes against the international recommended best practices.
      Citation: Corporate Governance
      PubDate: 2022-04-25
      DOI: 10.1108/CG-08-2021-0302
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Audit committees’ oversight role in developing countries: evidence
           from Jordan

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      Authors: Salem Alhababsah
      Abstract: This study aims to explore the opinions of audit committee (AC) members on the extent to which they fulfil the oversight role vested in them by the Jordanian Corporate Governance Code (JCGC). This study uses semi-structured interviews with 18 AC members. The findings suggest that although ACs largely meet the JCGC’s recommendations, their substantive oversight role in practice is limited. In particular, the responses indicate that ACs suffer from a lack of real power, especially concerning the appointment (or removal) of external auditors and the evaluation of internal control. Moreover, ACs have no actual role in issues deemed important for financial reporting quality (e.g. reviewing management estimates and evaluating chief financial officer (CFOs) and internal audit executives). This study provides rich insights into ACs’ oversight processes in a setting outside the Anglo-Saxon corporate governance model where knowledge is scant on the ACs’ real function. Hence, the study injects the literature with new qualitative-based evidence from a peculiar civil law country. Also, Jordan has spent time and energy trying to strengthen corporate governance practices to boost investors’ confidence. However, the interviewees’ responses indicate that the oversight role of the AC is still far from what the regulators anticipate. Therefore, the findings offer useful feedback for regulators to think more deeply about the current governance regulations. The feedback from this study can be extended to other developing countries with similar institutional environments, especially countries in the Middle East and North Africa.
      Citation: Corporate Governance
      PubDate: 2022-04-11
      DOI: 10.1108/CG-05-2021-0196
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Impact of corporate governance and institutional context on
           multilatinas’ reporting quality

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      Authors: Diego Andrés Correa-Mejía
      Abstract: This study aims to identify the impacts of corporate governance (CG) and institutional context on multilatinas’ corporate reporting quality (CRQ). CG and institutional context facilitate the reduction of agency problems and the existence of accountability processes that minimize information asymmetries. A panel data model was developed from a sample of 77 multilatinas studied during the 2014–2020 period. Different estimations were carried out through the panel data model to identify the impact of CG and institutional context on CRQ. It is evidenced that appropriate CG structure has a positive impact on multilatinas’ CRQ. In addition, each country’s regulatory quality is confirmed to have a positive effect on firms to produce higher-quality reports. This research provides empirical support to what is put forward by agency and stakeholder theory regarding the role that CG and institutional context play in reducing information asymmetries and improving accountability processes to all stakeholders in the Latin American context. This study contributes original results to the existing literature. Unlike previous works, the present research analyzed multilatinas facing social and political contexts that differ from those of multinationals from developed countries. Different ways of reporting were also covered, going beyond traditional ways of evaluating CRQ – which generally take the sustainability report as a basis.
      Citation: Corporate Governance
      PubDate: 2022-03-30
      DOI: 10.1108/CG-09-2021-0343
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The phenomenological complexity of boardroom’s research

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      Authors: Karim S. Rebeiz
      Abstract: The quest to unravel the mysterious boardroom’s structure that would confer the firm with incremental layers of economic supremacy has emerged as an issue of considerable importance in the corporate governance literature. Despite numerous attempts, corporate governance research has repeatedly failed to establish a clear and unequivocal theoretical linkage between the boardroom type and the corporate performance. Specifically, the optimum boardroom’s structure (i.e. one that would yield maximum economic benefit) remains an elusive dilemma. Undoubtedly, this problematic deserves more scrutiny. This study aims to expose the different layers of dimensional complexities related to boardroom’s research, particularly as it relates to those investigations using the positivist philosophy of research via inferential statistics using hypothetico-deductive reasoning. The author examines the intrinsic complexities of boardroom’s research using thematic analysis. In the first phase, the author conducts a fine-grained systematic review of published studies in scholarly peer-reviewed journals. In the second phase, the author conduct a phenomenological investigation via semi-structured interviews with 35 seasoned corporate governance scholars with sound knowledge and expertise on boardroom’s research. The thematic analysis reveals three overarching complexity dimensions encountered in boardroom’s research: an input dimension related to the ontological complexity of corporations. Research on boardroom’s effectiveness entails the manipulation and analysis of a plethora of convoluted and intertwined corporate performance determinants. Such explanatory variables are difficult to capture, untangle and operationalize; a processing dimension related to the methodological complexity of dealing with imperfect and incomplete information. Positivist research often uses large archival databases marred with endogeneity complications; an output dimension epitomizing the epistemological complexity of ascertaining what really constitutes corporate performance. The currently adopted performance metrics (accounting or market indicators) do not adequately depict the essence of boardroom’s effectiveness and corporate success. Boardroom’s research continues to generate high level of interests in academic circles. Specifically, research on the linkage of boardroom’s structure and corporate performance is both unclear and confusing. This lingering deficiency necessitates the adoption of novel epistemological and methodological approaches to broaden the theoretical perspectives of boardroom’s structural effectiveness. One key motivation of this study is to entice boardroom’s research to venture in the direction of uncharted territories. Knowledge discovery in this important area would have far-reaching implications on corporate governance best practices, including how to restructure existing boardrooms or how to establish new ones from scratch. A well-functioning boardroom would justifiably push the firm in the direction of healthier corporate governance. In turn, healthier corporate governance would eventually yield superior corporate performance with positive consequences on key stakeholders, including shareholders, employees, customers, suppliers, regulators and other members of the profession and the society. In this paper, the author endeavors to identify and explain the root causes behind the complex nature of boardroom’s research. The author particularly focuses on the factors that blur or distort the causal linkage between boardroom’s type and corporate performance. To the author’s knowledge, this is the first comprehensive investigation that attempts to highlight the inherently complex nature of boardroom’s research. Thus, it fills an important gap in the literature.
      Citation: Corporate Governance
      PubDate: 2022-03-15
      DOI: 10.1108/CG-11-2021-0416
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Determinants of CEO compensation: evidence from Pakistan

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      Authors: Aisha Khursheed , Nadeem Ahmed Sheikh
      Abstract: The purpose of this paper is to investigate the impact of firm-specific (i.e. firm size, profitability, leverage, dividend, growth opportunities, management quality and firm age) and country-specific (i.e., gross domestic product [GDP] growth) variables on compensation/remuneration offered to chief executive officers (CEOs) working in different industries of Pakistan. Panel data techniques, namely, pooled ordinary least squares, fixed effects and random effects methods are used to estimate the results. Moreover, Hausman test is used to choose which estimation method, either fixed effects or random effects, is better to explain the results. Firm size, profitability, leverage, growth opportunities and age are some important firm-specific factors that have mixed (i.e. positive/negative) impact on CEO compensation in different industries. Variations in results are due to industry dynamics. However, it is important to mention that three key variables, namely, dividend, management quality and GDP growth have shown consistent positive impact on CEO compensation in most of the industries. In sum, results show that firm-specific and country-specific variables have material effects on CEO compensation. Moreover, results are found consistent with the predictions of agency theory and human capital theory. The authors are sure that findings of this study provide some support to the board of directors to determine the pay slice for CEOs. Moreover, findings provide support to the regulatory authorities in formulating mechanisms to determine the compensation package for CEOs working in different industries and to improve the Code of Corporate Governance. To the best of the authors’ knowledge, no empirical study in Pakistan has yet estimated the effects of firm-specific and country-specific variables on compensation offered to CEOs working in different industries. Thus, industry-wise analysis provides some new insights to the decision-makers and lays some foundation upon which a more detail analysis could be based.
      Citation: Corporate Governance
      PubDate: 2022-03-11
      DOI: 10.1108/CG-06-2020-0218
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Family ownership and risk: the role of family managers
         This is an Open Access Article Open Access Article

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      Authors: Carlotta D'Este , Marina Carabelli
      Abstract: This study aims to investigate the relationship between family managers and firms’ risk levels in a context characterized by low investor protection and firm opacity. Specifically, this paper examines whether the level of risk faced by firms is affected by family shareholders’ ownership stake and activism. Corporate governance data were hand-collected for a sample of 90 Italian listed companies and 540 observations from the year 2018. Regression analysis was then used to test the research hypotheses. This study provides evidence of a positive association between active family ownership and risk faced by sampled firms. This study also finds that the number of inside directors is negatively correlated with firms’ risk-taking. Overall, the results confirm family managers’ influence on firms’ risk choices and show consistency with theoretical arguments in favor of hiring professional managers to guide family-owned firms. Practical implications emerge from the study findings. First, family owners should consider to hire a larger number of professional managers to support firms’ wealth maximization and retention and to reduce default risks. Second, investors should take into account the firms’ board of directors and management composition to better assess the investments risk level. Finally, the positive correlation between active family owners and systematic risk suggests the opportunity for regulators to improve the legal requirements related to minority directors to increase their effectiveness and, therefore, minority shareholders’ protection. This study extends the literature on the association between ownership structure and firms’ risk levels, showing the effect of family managers on firms’ risk levels. Besides, to the best of the authors’ knowledge, no previous study investigates professional executives’ influence on risk when family ownership prevails.
      Citation: Corporate Governance
      PubDate: 2022-02-28
      DOI: 10.1108/CG-09-2021-0338
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Recasting trust and distrust in the boardroom
         This is an Open Access Article Open Access Article

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      Authors: Morris Mthombeni , Amon Chizema
      Abstract: This study aims to analyse trust and distrust as specific board processes between the board chair and chief executive officer (CEO) aimed at reducing corporate governance (CG) risk partially mitigated by regnant CG mechanisms. This study incorporates the nascent literature that posits trust and distrust as two separate constructs that co-exist simultaneously to recasts them in the CG domain. This paper analysed data from 20 in-depth interviews conducted with board representatives at four financial services firms in The Netherlands, South Africa and Zimbabwe. This paper found that the foundational bases of the chair–CEO relationship determine how trust and distrust are apportioned between them, which impacts board dynamics. This paper also confirmed that the constructs of trust and distrust are separate thus do not sit at opposite ends of a single continuum. Finally, this paper found that high levels of task-based distrust (as opposed to mistrust) are necessary during periods of organisational distress and more effective if there are also high levels of relational trust between the parties. This paper empirically examines the relationship between trust and distrust in CEO–chair dyadic relationships in multiple companies across multiple countries. This paper also introduces the concept of tempered trust, which is defined as interpersonal trust tempered by task-based distrust, recasting the traditional characterisation of trust and distrust in the CG domain, thereby making a useful contribution to the literature on board dynamics.
      Citation: Corporate Governance
      PubDate: 2022-02-23
      DOI: 10.1108/CG-06-2021-0235
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Voluntary adoption of integrated reporting, effective legal system and the
           cost of equity

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      Authors: Elise Zaro , Eduardo Flores , Marco Fasan , Fernando Dal-Ri Murcia , Claudio Soerger Zaro
      Abstract: Integrated reporting (IR) provides integrated financial and nonfinancial information about companies based on the integrated thinking principle. This study aims to investigate how the cost of equity relates to IR disclosure and the impact of an effective legal system on this relationship. Effective legal system (“enforcement”) represents the strength of the legal system of a country. Although voluntary initiatives are essentially not based on regulations, the authors expect that the effective legal system will influence the implementation of such. To test the study’s hypotheses, linear regressions were applied using the Thomson Reuters database to analyze 20,463 firm-year observations between 2010 and 2017. The treatment group comprised companies that adopted IR; using propensity score matching, the authors defined the control group. The authors adopted a research design based on difference-in-differences to compare the cost of the capital of treatment with the control group for the periods before and after the IR adoption. The results indicate that IR disclosure is negatively related to the cost of equity, and this negative effect is more prevalent for companies operating in high-enforcement environments. Cost of equity is not a directly observable variable, implying that the results are sensitive to changes in the parameters that are used to compute this term. The results can help companies looking for evidence of potential effective gains of adopting IR. They also help understand that discussions related to environment, social, and governance information are somehow incorporated by analysts and investors, and reflected in the cost of raising funds. This study demonstrates how IR relates to the cost of equity considering a global sample of voluntary adopters. It also analyzes the impact of institutional factors on this relationship by using a robust method of analysis. The results support the argument that companies in a strong legal system are more likely to behave sustainably and to disclose this attitude. Additionally, they are pressured to implement proposals rather than just adopting an initiative as a label.
      Citation: Corporate Governance
      PubDate: 2022-02-15
      DOI: 10.1108/CG-03-2021-0096
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The development of corporate governance literature in Malaysia: a
           systematic literature review and research agenda

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      Authors: Saleh F.A. Khatib , Dewi Fariha Abdullah , Ahmed Elamer , Saddam A. Hazaea
      Abstract: This study aims to provide a comprehensive review of the existing literature on corporate governance (CG) aspects of the Malaysian market. It offers insights into the phases of Malaysian CG, identifies crucial gaps in the literature and outlines an agenda for impending research. Following a systematic literature review approach, a final sample of 125 studies from Scopus and Web of Science databases was used in this study. These studies were selected based on quality assessment criteria. Then, the sample literature was evaluated in terms of journals, methodology, theories, modelling, research outcomes and CG characteristics. The results show that there is a growing interest among researchers to further explore CG aspects in Malaysia due to the continuous development of the Malaysian CG codes. Likewise, the review reveals that the majority of prior studies are quantitative and were carried out using archived data from non-financial firms. Also, the existing literature has primarily focused on the outcomes of CG, especially firm performance. Overall, the results show that there is ample room for future research. The present paper identifies a number of methodological problems and concerns, and discusses the implications of these problems, while also providing recommendations for future research. The main caveat is that the authors use scholarly papers published in academic journals only, but this approach offers them with opportunities for considerable further developments. To the best of the authors’ knowledge, this study contributes to the literature by being the first of its kind to concentrate on the Malaysian context. It provides a comprehensive knowledge assessment of the Malaysian CG research and offers advice regarding improvements in research, policy and practice by identifying possible knowledge gaps. Consequently, this study provides a cohesive story of the past and a road map for future research on Malaysian CG.
      Citation: Corporate Governance
      PubDate: 2022-02-14
      DOI: 10.1108/CG-12-2020-0565
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Does board composition influence working capital management' Evidence
           from Thailand

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      Authors: Chamaiporn Kumpamool , Nongnit Chancharat
      Abstract: This study aims to investigate the influence of board composition on the working capital management (WCM) of Thai listed firms for the period 2010–2019. Probit regression and two-step system generalized method of moments (GMM) are used to address this issue. The results indicate that, while a larger board size causes a lower net working capital holding, it increases its efficiency. Firms with chief executive officer (CEO) duality adopt aggressive policies for their financing but avoid them for their investment to balance the risks and returns of implementing the working capital (WC) policy. Conversely, firms with higher board independence prefer to use conservative WC financing policies. The findings support using both the agency and stewardship theories. The authors focus on listed non-financial firms; therefore, the findings may not be generalizable to financial and private firms. The findings provide implications for practitioners to focus more on board composition, as it is crucial for WCM. Furthermore, they should avoid applying a single theory in isolation, especially for CEO duality, as one theory is appropriate only for some policies. The authors also provide guidelines for policymakers and regulators to formulate strategies that support more board diversification in terms of size and independence, to enhance board efficiency. To the best of the author’s knowledge, this study is the first to directly examine the influence of board composition on aggressive WC policies in Thailand.
      Citation: Corporate Governance
      PubDate: 2022-02-11
      DOI: 10.1108/CG-10-2020-0468
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Technical efficiency in the Ghanaian banking sector: does boardroom gender
           diversity matter'

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      Authors: Isaac Boadi , Raymond Dziwornu , Daniel Osarfo
      Abstract: The marginalization of women on boards is a heavily discussed topic across the world, especially in Ghana. Apart from estimating the link between boardroom gender diversity and technical efficiency of banks, this study aims to test the presence of upper echelons theory in the Ghanaian banking sector. The study examines data from 2000 to 2019 annual reports of 23 banks in Ghana. The stochastic frontier analysis is used to estimate the impact of boardroom gender diversity on technical efficiency of banks in Ghana. This study finds that greater boardroom gender diversity generates technical efficiencies for banks. The results remain unchanged after accounting for bank types (listed and non-listed). Thus, all banks benefit in terms of technical efficiency from more boardroom gender diversity. The upper echelons theory is validated in the Ghanaian banking context. Overall, the study supports pro-gender diversity on boards. The results have implications at corporate, social and national levels. It supports the need for policies that improve greater boardroom gender diversity. This study adds to a growing number of non-developed countries by investigating the link between the boardroom gender diversity and technical efficiency of banks in Ghana, a country which historically has had minimal female participation in the workforce. New insight is, therefore, offered into this relationship by using data which examines the technical efficiency of banks periods before and after the Women in Finance Charter in 2016.
      Citation: Corporate Governance
      PubDate: 2022-02-10
      DOI: 10.1108/CG-04-2021-0144
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Impact of ESG disclosure and financial reporting quality on investment
           efficiency

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      Authors: Nejla Ould Daoud Ellili
      Abstract: This study aims to examine the impacts of environmental, social and governance (ESG) disclosure and financial reporting quality (FRQ) on investment efficiency. Several econometric models have been applied to estimate the impacts of ESG disclosure and FRQ on investment efficiency, using the United Arab Emirates (UAE) as a sample in 2010–2019. Estimations considered subsamples of underinvestment, overinvestment and low and high FRQ values. Empirical results show a positive relationship between ESG disclosure, FRQ and investment efficiency, and that this relationship is more important in the underinvestment and high FRQ sub-samples. Results suggest that ESG disclosure improves transparency, mitigates information asymmetry and enhances investment efficiency. The findings could help UAE regulators incorporate ESG information into reporting and implement effective mechanisms to increase the extent of ESG information to improve investment efficiency. This study only examined UAE traded companies. Future research should investigate other factors influencing investment efficiency and conduct comparative studies across Gulf Cooperation Council countries. This study reveals the significant positive impact of ESG disclosure and FRQ on investment efficiency. These findings will help companies optimize their ESG information disclosure, improve the quality of their financial reports and comply with ESG standards. The study aims to develop knowledge that will not only benefit companies regarding the potential impact of ESG disclosure but also help national and international society create a better social environment and reduce climate change. To the best of the authors’ knowledge, this study is the first to examine the relationship between ESG disclosure, FRQ and corporate investment efficiency. The research contributes to understanding the financial impacts of ESG disclosure and FRQ and supports regulators’ efforts to enforce ESG disclosure and improve FRQ.
      Citation: Corporate Governance
      PubDate: 2022-02-03
      DOI: 10.1108/CG-06-2021-0209
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Effects of quick response to COVID-19 with change in corporate governance
           principles on SMEs’ business continuity: evidence in Vietnam

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      Authors: Thanh Tiep Le , Van Kha Nguyen
      Abstract: The purpose of this paper is to evaluate the negative impacts of the Coronavirus Disease-2019 (COVID-19) emergency on small- and medium-sized enterprises’ (SMEs) business continuity (BC) by examining the moderating role of corporate governance principles (CGP) on SMEs’ BC in the context of an emerging market. Based on an extended literature review on the negative impacts of the COVID-19 emergency, CGP and BC studies, the authors evaluate the impact of these constructs on SMEs’ BC in an emerging market. This paper follows a quantitative approach. The study sample was composed of 334 responses covering directors, managers and owners of enterprises. The Smart PLS SEM version 3.3.2 was used to analyse the data from SMEs of Vietnam in the year 2021. The findings of this study clarify the areas of the COVID-19 consequences that negatively affect the BC. In addition, this study reveals that CGP moderates the links between COVID-19 outcomes and BC, whereby good CGP can facilitate a business to reduce the adverse effects of COVID-19 on BC. In addition to this, good CGP can help a firm to enhance its capability to respond to fluctuations in the external environment of the business. To the best of the authors’ knowledge, this is the first research that examines the moderating role of CGP. The originality of this study is that it gives an insight into how SMEs in an emerging economy overcome the adverse effects of the COVID-19 emergency on BC to keep their business going, and moreover, have the ability to move towards sustainability in today’s challenging context. This study provides the theoretical and managerial implications that may be of great interest to the academics, business practitioners and policymakers.
      Citation: Corporate Governance
      PubDate: 2022-02-01
      DOI: 10.1108/CG-09-2021-0334
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Gambling in professional sport: the enabling role of “regulatory
           legitimacy”

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      Authors: Richard Evans , Geoff Walters , Sean Hamil
      Abstract: This study aims to explain why organisations remain vulnerable to financial failure despite increasing financial regulation to improve governance. Using a case study of gambling and regulation in professional football in England, it introduces the concept of “regulatory legitimacy” to show how this enables football clubs to gamble. The study quantifies the extent to which football clubs in the Championship of the English Football League (EFL) adopt a conventionally economically irrational decision to run a loss-making budget in the hope of achieving sporting success. The study postulates criteria for evidence of this form of gambling by overspending on playing talent with data from the clubs’ published financial statements. A pay-off matrix is developed to compare the intended and actual outcomes. The research finds that this strategy was both prevalent and the most successful to achieve promotion. This study makes three contributions. The first is the quantification of the prevalence of this form of gambling. The second is the finding that, despite regulations to limit spending on wages, gambling is rational in the non-economic sense because it is almost a necessary strategy to achieve promotion if the club had not been relegated from the Premier League in the previous season. The third contribution is the development of the concept of “regulatory legitimacy” as a way to understand the process through which regulations are implemented yet are ineffective at curbing financial gambling.
      Citation: Corporate Governance
      PubDate: 2022-01-20
      DOI: 10.1108/CG-07-2021-0251
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Effects of founder CEO duality and board size on foreign IPOs’
           survival in US markets

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      Authors: Sang-Youn Lee , Eun-Jeong Ko
      Abstract: This study aims to investigate how three critical governance decisions by foreign firms impacted their survivability post-initial public offerings (IPO): the choice of CEO (founder vs non-founder); the power the founder CEO wields relative to the board in terms of CEO duality; and board size. This study uses data from 86 foreign firms that completed IPOs in the US market between 2000 and 2008 and adopts a Cox proportional hazards model to examine how the founder, founder CEO duality and board size influence foreign firm delisting post-IPO. A founder CEO or a founder CEO with duality (i.e. when a founder CEO is also chair of the board of directors) does not support a foreign firm’s survival post-IPO. Expectedly, board size has a negative impact on post-IPO firm survivability; however, founder CEO duality positively moderates this negative relationship. Therefore, founder CEO duality plays a positive indirect role in the context of post-IPO firms with large boards. First, while the benefits of CEO duality have been empirically ambiguous, this study clarifies how founder CEO duality manifests its positive impacts in foreign listings. Second, by focusing on board cognition, this study confirms the negative impact of large boards, but highlights that this can be mitigated by governance leadership structure. Finally, despite organizational life-cycle theorists’ advocacy of the replacement of founder CEOs with professional CEOs in sizable ventures, this study shows the benefits of their retention when the board is large.
      Citation: Corporate Governance
      PubDate: 2022-01-17
      DOI: 10.1108/CG-04-2021-0151
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate governance reform in Nigeria: upstream and downstream
           interventions

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      Authors: Franklin Nakpodia , Femi Olan
      Abstract: Internal (e.g. firm performance, internal stakeholders) and external pressures (e.g. globalisation, technology, corporate scandals) have intensified calls for corporate governance reforms across varieties of capitalism. Yet, corporate governance practices among developing economies remain problematic. Drawing insights from Africa’s largest economy (Nigeria) and relying on the resource dependence theorisation, this study aims to address two questions – what are the prerequisites for effective reforms; and what reforms yield robust corporate governance' This study adopts a qualitative methodology comprising semi-structured interviews with 21 executives in publicly listed Nigerian firms. The interviews were analysed using the content analysis technique. This study proposes two sequential reforms (i.e. the upstream and downstream). The upstream factors highlight the preconditions that support corporate governance reforms, i.e. government commitment and enabling environment, while the downstream reforms combine elements of awareness and regulation to proffer robust corporate governance interventions. This research further stresses the need to consider a bottom-up approach to corporate governance in place of the dominant top-down strategy. This strategy allows agents to participate actively in corporate governance policy-making rather than a top-down model, which imposes corporate governance on agents.
      Citation: Corporate Governance
      PubDate: 2022-01-14
      DOI: 10.1108/CG-09-2021-0347
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Impact of corporate network position on strategic risk and company’s
           performance – evidence from Poland

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      Authors: Justyna Światowiec-Szczepańska , Beata Stępień
      Abstract: The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the largest Central European stock market. This study integrates the theory of social network analysis (SNA) with corporate governance theory with a special focus on resource dependence theory. Using the framework of network social analysis, the authors use network measures of social capital and embeddedness. The results of studying companies listed on the Polish stock exchange indicate that a company’s corporate network position has a significant negative impact on strategic risk while having no influence on its financial performance. The research also highlights the importance of a firm’s corporate governance model for both performance and strategic risk. The data collected, and SNA measures used made it possible to conduct a cross-sectional study. Compared to longitudinal studies, this type of study has a couple of disadvantages addressed in the paper. In the future, the dependencies observed in this study should be tested using longer-term data. To the best of the author’s knowledge, this is the first paper integrating the corporate personal and capital networks to test risk and performance dependencies in the context of Poland’s corporate governance model. The findings and conclusions can also be applied to analyzing Central and Eastern Europe stock markets.
      Citation: Corporate Governance
      PubDate: 2021-12-21
      DOI: 10.1108/CG-02-2021-0061
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Are political connections beneficial or harmful toward firms’
           performance' A meta-analysis approach

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      Authors: Khusnul Prasetyo , Damai Nasution
      Abstract: This study aims to reconcile conflicting empirical results from prior studies on the association between political connections (PCs) and firms’ performance. Furthermore, it investigates whether the contradictory findings were moderated by the different types of both PCs and firms’ performance measures. This study also makes a cross-country comparison of the empirical evidence to provide more insight. This study used meta-analysis to integrate the previous studies’ findings on the association between PCs and firms’ performance and further investigated the moderators of such association. The findings show that PCs have a positive association with firms’ performance. This result is apparent for both democratic and authoritarian countries, which suggests PCs’ beneficial consequences toward firms’ performance should not be disregarded in both contexts. This study also finds PCs and firms’ performance measures moderate the association between PCs and firms’ performance. This study contributes to the stream of research that investigates the association between PCs and firms’ performance. To the best of our knowledge, it is among the first to implement statistical meta-analysis on the aforementioned literature while incorporating a cross-country comparison.
      Citation: Corporate Governance
      PubDate: 2021-12-01
      DOI: 10.1108/CG-07-2021-0256
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does board gender diversity affect capital structure decisions'

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      Authors: Sourour Ben Saad , Lotfi Belkacem
      Abstract: The purpose of this paper is to investigate the indirect relationship between board gender diversity and capital structure decisions and to examine whether the capital structure is affected by the type of approach used to promote women’s participation in the boardroom. Based on a sample of French non-financial listed companies over the period 2006–2019, this paper uses structural equations modeling, difference-in-differences using propensity score matching and chow test to highlight these effects. This paper finds that the relationship between the board gender diversity and the capital structure is mediated through the information transparency channel and firm risk taking channel. Furthermore, the results show that the effect of board gender diversity on capital structure decisions varies through the approach adopted (voluntary, enabling or coercive). This paper contributes to the literature in several ways. First, the study is to the knowledge the first to examine whether and how board gender diversity affects capital structure decisions through two mediations channels, namely, the information transparency and the firm risk taking. Second, the study is one of the first to examine whether the capital structure is affected by the type of approach used to promote women’s participation in the boardroom: coercive, enabling or voluntary approach.
      Citation: Corporate Governance
      PubDate: 2021-11-25
      DOI: 10.1108/CG-12-2020-0575
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Do women on corporate boardrooms have an impact on tax avoidance' The
           mediating role of corporate social responsibility

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      Authors: Anissa Dakhli
      Abstract: The purpose of this paper is to investigate the direct and indirect relationship between board gender diversity and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable. This study uses a panel dataset of 200 French firms listed during 2007–2018 period. The direct and indirect effects between board gender diversity (BGD) and tax avoidance were tested by using structural equation model analysis. The results indicate that the presence of women on corporate boardrooms negatively affects tax avoidance. The greater the proportion of women in boards, the lower the likelihood of tax avoidance practice. In the mediation test, CSR appears to partially mediate the link between women on boards and corporate tax avoidance. Additional analysis shows that the social dimension of CSR produces this mediating effect. The results have practical implications for companies in regulating the composition of their boards. To benefit from diversity, firms have to increase women‘s percentage in their boards of directors. Also, investors are encouraged to pay attention to the percentage of female directors when investing and purchasing shares. This study proved empirically that the higher proportion of female directors significantly reduces the possibility of tax avoidance either directly or indirectly through enhancing CSR performance. The findings show that firms with gender diversified boards are more likely to get involved in CSR for hedging against the potential consequences of aggressive tax avoidance practices. In light of the above results, firms are well-advised to strongly apply the policy encouraging or mandating women as board members to take advantage of their expected benefits. The originality of this paper consists in proposing the establishment of both direct and indirect relationships between BGD and corporate tax avoidance through CSR. Unlike prior studies that have been examining the direct relationship between corporate governance mechanisms and corporate tax avoidance, this study went further to investigate the indirect relationship between these two constructs. This study also differs from prior studies as it examines the effect of BGD on each of constituting pillars of CSR, namely, environmental, social and governance. To date, an extensive part of CSR research has used the combined score of CSR, but the effects on different CSR pillars remain little investigated.
      Citation: Corporate Governance
      PubDate: 2021-12-07
      DOI: 10.1108/CG-07-2021-0265
      Issue No: Vol. 22 , No. 4 (2021)
       
  • External whistleblowing intentions of auditors: a perspective based on
           stimulus–organism–response theory

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      Authors: Tuan Mastiniwati Tuan Mansor , Akmalia Mohamad Ariff , Hafiza Aishah Hashim , Abdul Hafaz Ngah
      Abstract: This study aims to examine the roles of perceived organisational support (POS), attitude and self-efficacy in understanding the external whistleblowing intentions among senior auditors through the lens of stimulus–organism–response theory. This study uses data from 119 senior auditors in audit firms in Malaysia. POS is predicted to be a stimulus factor from the external environment that affects the attitude and self-efficacy (organism) of the auditors and reassures them to act to whistleblow (response). POS has a significant impact on self-efficacy and on attitude. Self-efficacy is shown as a significant mediator between POS and external whistleblowing intentions, but there is no statistical support for self-efficacy having a mediating effect on the relationship between the attitude of senior auditors and external whistleblowing intentions. The findings can assist accounting professional bodies in understanding the psychological behaviours of auditors that contribute to their intention to shine a light on wrongdoing in audit firms and in providing a better insight into the critical factors that could influence auditors to whistleblow. This study is among the earliest to investigate the application of stimulus–organism–response theory in whistleblowing, and hence it illustrates how the theory can be applied in studies on the ethical behaviours of actors in professional careers. The findings shed light on the role of self-efficacy as a significant mediator between POS and external whistleblowing intentions.
      Citation: Corporate Governance
      PubDate: 2021-12-03
      DOI: 10.1108/CG-03-2021-0116
      Issue No: Vol. 22 , No. 4 (2021)
       
  • The effect of borrower country financial system and corporate governance
           system types on the spread of syndicated loans

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      Authors: Nuno Moutinho , Carlos Francisco Alves , Francisco Martins
      Abstract: This study aims to analyse the effect of borrower’s countries on syndicated loan spreads, featuring countries according to institutional factors, namely, financial systems and corporate governance systems. This study is an empirical investigation based on a unique sample of more than 85,000 syndicated loans from 122 countries. The paper uses standard and two-stage least squares regression analysis to test whether the types of financial and corporate governance systems affect loan spreads. The paper finds that borrowers from countries with financial systems oriented towards the banking-based paradigm pay lower interest rate spreads than those from countries with financial systems oriented towards the market-based paradigm. In addition, there is evidence that borrowers from countries with more developed financial systems pay lower spreads. The results also show that borrowers from countries with an Anglo-Saxon governance system pay higher spreads than borrowers from countries with a Continental governance system. This study does not consider potential promiscuous relationships that can arise at the ownership structure and governance level between banks and borrowers and may affect loan spreads. This study suggests that financial and corporate governance systems are essential factors in the financial intermediation process. Furthermore, the evidence indicates that corporates with higher potential agency costs and higher potential information asymmetry are requested to pay higher spreads. Therefore, the opportunities to such corporates invest optimally tend to be scarcer. The paper highlights the impact of institutional factors on the cost of financing, characterising the countries according to the type of financial system and the type of corporate governance system. The study finds that borrowers from countries with bank-based financial systems pay lower interest rate spreads than those from countries with market-based financial systems. The paper also highlights how the level of financial development affects the cost of financing. The paper focusses on non-financial firms, unlike financial firms, which have been the focus of several empirical studies on topics relating to the cost of funding and corporate governance.
      Citation: Corporate Governance
      PubDate: 2021-11-23
      DOI: 10.1108/CG-02-2021-0071
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Corporate governance and financial performance of state-owned enterprises
           in Kenya

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      Authors: Albert Ochien’g Abang’a , Venancio Tauringana , David Wang’ombe , Laura Obwona Achiro
      Abstract: This paper aims to report the results of an investigation into the effect of aggregate and individual corporate governance factors on the financial performance of state-owned enterprises (SOEs) in Kenya. The paper uses balanced panel data regression analysis on a sample of 45 SOEs in Kenya for a four-year period (2015–2018). The panel data analysis results show that board meetings, board skill and gender diversity individual provisions of corporate governance are significantly and positively associated with capital budget realization ratio (CBRR). Moreover, the study finds that aggregate corporate governance disclosure index, board sub-committees, board size and independent non-executive directors are positive but insignificantly related to CBRR. The current study is based on secondary data, other methods of knowledge inquiry such as interviews and questionnaires may provide additional insights on the effectiveness of corporate governance on financial performance. Overall, the results imply that corporate governance influences the performance of SOEs in Kenya. The results suggest that Mwongozo Code of Corporate Governance provisions should be changed to increase the number of women representations on board and the number of directors with doctoral qualifications because of their positive impact on the financial performance of SOEs in Kenya. Also, policymakers with remit over SOEs should re-evaluate why other corporate governance appear not to have an impact with a view of making the necessary changes. The paper contributes to the dearth of literature on the efficacy of corporate governance on the financial performance of SOEs in developing countries.
      Citation: Corporate Governance
      PubDate: 2021-11-12
      DOI: 10.1108/CG-01-2021-0007
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Stock liquidity and stock return: an asymmetric impact of institutional
           ownership approach

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      Authors: Abbas Ali Daryaei , Yasin Fattahi
      Abstract: This study is primarily aimed at investigating the asymmetric impact of institutional ownership on the relationship between stock liquidity and stock return. It was conducted by testing the hypotheses regarding efficient monitoring and adverse selection from Tehran Stock Exchange (TSE). Using a panel smooth transition regression model and selecting 183 firms for the period from 2009 to 2019 from TSE, this study examined the data to explore the asymmetric impact of institutional ownership on the relationship between stock liquidity and stock return. The results show a positive impact by institutional ownership on the relationship between stock liquidity and stock return in the first regime (threshold level 39%), whereas in the second regime, there is a negative impact by institutional ownership on the relationship between stock liquidity and stock return. Furthermore, the firms were divided into two groups based on the market value. The first group includes those with a market share less than the mean total market value of the sample. The second group includes firms with a market share higher than the mean total market value of the sample (large firms). The results illustrate that the threshold level is 32% and 44% for the first and second groups, respectively. The findings of this study suggest that institutional ownership theories require closer inquiry.
      Citation: Corporate Governance
      PubDate: 2021-11-03
      DOI: 10.1108/CG-03-2021-0119
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Attributes of corporate boards and assurance of corporate social
           responsibility reporting: evidence from the UK

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      Authors: Laila Aladwey , Adel Elgharbawy , Mona Atef Ganna
      Abstract: This study aims to investigate the relationship between the attributes of corporate boards in UK companies and their tendency to assure their corporate social responsibility (CSR) reports. From the agency theory perspective, the authors examine the impact of board attributes on the assurance of CSR reports for the Financial Times Stock Exchange (FTSE) 350 during 2016–2019. The authors used annual integrated reports, companies’ websites and Thomson Reuters Eikon database for data collection and the logistic regression for data analysis. The results confirm that some board attributes significantly influence a company’s decision to assure its CSR reports. While board size, board tenure, the presence of female board members and female executive directors and Chief Executive Officers (CEOs)’ global working experience positively contribute to CSR assurance (CSRA) decisions, the chairman’s independence negatively contributes to it. However, board independence, board meetings and board financial expertise demonstrate no effect on the CSRA decision. The authors focus on some attributes of board members, but the authors did not consider board diversity in its broader meaning. Moreover, the effect of board committees and their attributes on CSRA was not addressed. The authors also did not consider the impact of scope, the quality level of assurance service and the differences between assurance providers on companies’ decisions to neither undertake CSRA nor choose between assurance providers. The study provides insights into the increasing demand on voluntary assurance to boost the credibility of CSR reports and the role of the board of directors (BOD) in taking this initiative. The findings highlight the importance of board diversity (e.g. gender) in improving transparency and sustainability reporting, which can help policymakers and regulators in shaping future governance policies. Additionally, the findings refer to a drawback in the UK Corporate Governance Code regarding the chairman’s independence, which requires corrective actions from the Financial Reporting Council. The findings raise concern over the small share of audit firms in the assurance service market, despite the growing demand for these services in the UK, which may require more attention to these services from the audit firms. Companies are increasingly pressurized, especially after the COVID-19 pandemic, to discharge their accountability to stakeholders and to act in a socially responsible manner in their business activities. CSR reporting is one of the main tools that companies use to communicate their social activities. Understanding the determinants of voluntary CSRA helps to increase the credibility of CSR reports and the favorable response to social pressure. The authors add empirical evidence to the limited literature on CSRA about the role of the BOD in undertaking companies’ social responsibility, improving CSR reporting and reducing information asymmetry. It also highlights the significance of maintaining a balanced BOD in terms of gender, experience and tenure, in minimizing the risk of perpetuating non-transparent integrated reporting.
      Citation: Corporate Governance
      PubDate: 2021-10-28
      DOI: 10.1108/CG-02-2021-0066
      Issue No: Vol. 22 , No. 4 (2021)
       
  • The role of social ties in accelerating career progress of senior
           executives and directors in Poland

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      Authors: Paweł Mielcarz , Dmytro Osiichuk
      Abstract: This study aims to elucidate the role of social ties in facilitating the career progress of senior officers within public companies in an emerging market. The authors followed the career track of 2,151 senior officers serving on management and supervisory boards of Polish public companies. The authors used multivariate econometric modeling to investigate the factors shaping their career progress. The authors document an increasing impact of officers’ social networks on the likelihood of assuming multiple consecutive senior positions. It takes progressively less time for incumbent senior officers to find a subsequent/concomitant board position with a network of social ties from prior workplaces facilitating career progress and prior experience being negatively associated with multiple positions. Officers’ social ties at the senior level are also shown to be positively associated with total compensation and with the likelihood of cross-industry career transition in both executive and supervisory roles. Social network appears to play a more salient role in accelerating careers of supervisory board members even though executives also benefit therefrom. Finally, the network of social ties with former or incumbent supervisory board members exercises a more pronounced positive impact on career progress than ties with former or incumbent executives.
      Citation: Corporate Governance
      PubDate: 2021-10-25
      DOI: 10.1108/CG-01-2021-0042
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Voluntary corporate governance disclosure and bank performance: evidence
           from an emerging market

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      Authors: Haitham Nobanee , Nejla Ould Daoud Ellili
      Abstract: This study aims to explore the extent of voluntary corporate governance disclosure in the annual reports of banks in the UAE, operating in an emerging economy in the Gulf Cooperation Council region. It also examines the effect of this non-financial disclosure on bank performance by differentiating conventional and Islamic banks. This study applies content analysis to explore the extent of voluntary corporate governance disclosure using data collected from the annual reports of all the banks traded on the UAE financial markets from 2003 through 2020. It further examines the potential effect of voluntary disclosure on bank performance using dynamic panel data regressions. The results indicate a low level of voluntary corporate governance disclosure in the annual reports for most disclosure indices. However, conventional and Islamic banks do not differ significantly. Additionally, the results of the robust dynamic panel data from the two-step generalized method of moments system estimation confirm that voluntary corporate governance disclosure does not affect bank performance significantly. The findings of this study would benefit the central bank and lawmakers in the UAE in developing a framework for appropriate voluntary disclosure and enhancing the corporate governance framework to improve the quality of annual reports. This study contributes to the literature on the extent of corporate governance disclosure, as well as its association with bank performance in an emerging economy by differentiating between conventional and Islamic banks.
      Citation: Corporate Governance
      PubDate: 2021-10-22
      DOI: 10.1108/CG-12-2020-0535
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Does board capital increase firm performance in the Chinese tourism
           industry'

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      Authors: Umair Bin Yousaf , Irfan Ullah , Man Wang , Li Junyan , Ajid Ur Rehman
      Abstract: This study aims to examine the relationship between board capital and firm performance in the Chinese tourism industry. The study’s sample includes firms from the Chinese hotel, air transportation/travel and catering industries. This study explores the governance environment in tourism industries. This study estimates three dimensions of the board, including education, expertise and directors interlock. These dimensions are further grouped as human capital (i.e. education and expertise), social capital (interlocks) and board capital (sum of social and human capital). Ordinary least square regressions with multiple robustness tests are used to investigate the effect of board capital on firm value in Chinese listed tourism firms during 2005–2018. This study finds that board capital positively impacts firm performance in its dimensions of human and social capital. This study also highlights the two important ownership contexts, namely, institutional investors and state-ownership, that shape the board capital-firm performance association in the Chinese tourism industry. The findings suggest that board capital plays a significant role in corporate decisions. The results illustrate that higher board capital improves both governance mechanisms and resource provision roles of the board, resulting in higher firm value. The results further offer implications for managers and shareholders of tourism firms when electing directors as shareholders’ representatives. The study has two important contributions. First, it extends the prior literature of firm value by considering the board’s human and social dimensions in the tourism sector. Second, contrary to prior research on board, this study takes three facets of board capital, education, expertise and interlocks that improve governance mechanisms and bring new resources in the shape of skills, knowledge and expertise.
      Citation: Corporate Governance
      PubDate: 2021-10-18
      DOI: 10.1108/CG-04-2021-0165
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Board human capital diversity and corporate innovation: a longitudinal
           study

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      Authors: Tao Wang
      Abstract: The purpose of this paper is to investigate the effect of board human capital diversity on corporate innovation. Moreover, it examines the moderating effect of internal social capital on the relationship between board human capital diversity and corporate innovation. The hypotheses are tested using a data set on Standard & Poor’s 1500 firms from 2000 to 2015. To overcome omit variable bias and reverse causality, this paper uses change-on-change regression by exploring the exogenous shock of the death of the directors. Findings show that board industry diversity has a curvilinear relationship with corporate innovation. In addition, the board co-tenure experience, a key factor of internal social capital, can mitigate the risk of board industry diversity and improve corporate innovation. Prior studies mostly considered the demographic dimension of diversity and, therefore, have overlooked how other dimensions influence firms. This paper considers the human capital dimension of board diversity and investigates the effect of board industry diversity on the firm’s innovation outcome. In addition, this paper also addresses the question of whether the interaction of different director attributes, namely, board human capital and board internal social capital, can complement each other to enhance corporate innovation.
      Citation: Corporate Governance
      PubDate: 2021-10-18
      DOI: 10.1108/CG-03-2021-0126
      Issue No: Vol. 22 , No. 4 (2021)
       
  • Corporate Governance

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